Microsoft Reworks Activision Blizzard Deal to Address Cloud Gaming Concerns
Microsoft has announced a restructuring of its landmark, multi billion dollar plan to acquire Activision Blizzard. The shift aims to reallocate cloud gaming rights by transferring them to Ubisoft, the game publisher known for diverse titles and a global network. The move concentrates on promising cloud access for Call of Duty, World of Warcraft, and a broader array of Activision Blizzard franchises on Ubisoft’s platform. This adjustment is presented as a way to reassure regulators in key markets, especially in the United Kingdom, while keeping the core ambition of broad, cross platform availability intact.
On 26 April, the British Competition and Markets Authority blocked the initial EU level deal valued at around 70 billion dollars, arguing that the arrangement could alter competition in the cloud gaming space. The regulator warned that the merger might hamper innovation and dilute consumer choice. This decision marked a significant hurdle for Microsoft, which had pursued the acquisition since early 2022.
Microsoft states that the restructuring will address concerns raised by the UK regulator by limiting the transaction to a smaller package of rights. The company notes that the revised plan focuses on cloud streaming implications and leaves space for ongoing regulatory review. The UK authority has indicated it will assess the new offer and share its position by mid October, with a formal response expected on the announced date.
Ubisoft as the Recipient of Cloud Streaming Rights
The new proposal designates Ubisoft as the recipient of cloud streaming rights for Activision Blizzard titles across PC and console ecosystems for the next 15 years. While the portfolio prominently features renowned franchises like Call of Duty and World of Warcraft, it also hints at other familiar games such as Devil May Cry, Crash Bandicoot, Tony Hawk titles, and Guitar Hero across various markets. Microsoft describes these rights as lasting in perpetuity, underscoring the long term nature of the agreement. [Cited commentary: industry observers note the breadth of rights and potential market implications].
Under this arrangement, Microsoft would refrain from locking new releases to its own cloud services. Ubisoft would license and manage access to these games, with availability extended to multiple platforms, including PC, PlayStation, Nintendo, and other consoles, while keeping the console ecosystem open for consumers. The approach is framed as protecting consumer choice and avoiding exclusive lock ins on Microsoft cloud services.
It is important to note that Ubisoft would assume control of the rights outside the European Union, as regulators within the EU have shown a different stance on concentration concerns. In the United States, the Federal Trade Commission faced legal challenges that influenced the merger process, with subsequent appellate decisions shaping the timeline. Pending global regulatory scrutiny may limit certain regional actions until the UK case reaches a final decision. [Industry overview: regulatory landscape and regional responses].
Analysts observe that the revised plan could normalize cloud gaming access by spreading rights across multiple major platforms rather than concentrating them with a single provider. This has the potential to maintain competitive tension, sustain innovation, and ensure a broad player base for Activision Blizzard titles in a rapidly evolving cloud market. The unfolding process will determine how much of the original transaction endures and how regulators interpret the long term licensing framework. [Market commentary: anticipated regulatory turnaround].
The unfolding negotiations will continue to shape the cloud streaming ecosystem, with clear implications for players, developers, and fans worldwide. Stakeholders watch closely for a decision in the coming months and for any adjustments that could redefine cross platform access to popular franchises within a regulated, multi market environment. [Regulatory outlook: ongoing monitoring and potential concessions].